Health Co. To Cough Up $7M To End Medicaid Fraud Claims

Law360, New York (March 28, 2012, 6:55 PM ET) -- Universal Health Services Inc. and two subsidiaries will pay $6.85 million to the U.S. and Virginia governments to settle allegations they provided teenagers substandard psychiatric care at a now-defunct residential treatment center and submitted inaccurate Medicaid claims, officials announced Wednesday.

UHS and its subsidiaries, Keystone Education and Youth Services LLC and Keystone Marion LLC, also paid an additional undisclosed amount to three former therapists who first brought the matter to court as a qui tam suit in 2007. The settlement also resolves the therapists' separate discrimination...